European bank backs Turkey’s decarbonisation

Turkey has secured the backing from the European Bank for Reconstruction and Development (EBRD) to launch a new initiative to decarbonise its hard-to-abate sectors, such as steel, cement, aluminium and fertiliser.

The low-carbon pathways (LCPs) initiative will offer guidance to domestic and international players on the necessary technology and green financing to accelerate the country’s decarbonisation.

The initiative will bolster infrastructure development by addressing critical aspects such as logistics, grids, carbon storage, renewable energy and green hydrogen.

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Turkey has committed to a net-zero target of 2053, making industrial decarbonisation imperative. The LCPs show that investments of more than $70 billion will be needed to decarbonise the selected four sectors by 135 million tonnes CO2 annually.

The LCPs will also provide policy recommendations to create an enabling market environment for industrial decarbonisation, such as establishing a Turkish Emissions Trading System that is aligned with European Union regulations. 

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“Turkey has set ambitious climate targets that will require great efforts on the private and the public side, which the EBRD stands ready to support,” said the managing director for Turkey, Arvid Tuerkner.

EBRD is a key investor in Turkey, with almost €20 billion ($22 billion) invested in 440 projects and trade facilitation lines since 2009, predominantly in the private sector.